BAS Blog

Question of the Week

Written by BAS | Oct 28, 2021 1:34:10 PM

Q.- An employee is enrolled in our Dependent Care FSA. Her husband just quit his job and is now going to take care of their children after school. May we let our employee stop contributing to the DFSA?

A.- Yes, if your plan recognizes mid-year election changes. The IRS would allow the plan to recognize a mid-year election change if a spouse terminates employment and starts caring for the children.